Taxation in Croatia

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In its latest report for the country, the International Monetary Fund has recommended that Croatia modernize its property tax system to enable the country to lower the burden of taxes that weigh more heavily on economic growth.

Croatia’s two biggest parties are promising tax cuts and toning down talk of tough reforms as well as building alliances with smaller, mostly upstart parties to try to convince voters they can produce a stable government in September’s snap election.

Croatian Prime Minister Tihomir Oreskovic has announced a new property tax for 2017, which will slap bills on people with more than one home, or who do not use their real estate.

Croatia collects more taxes than allowed by its tax capacity which is why there is no more room for a further increase of tax rates and introduction of new taxes. Instead of that, attempts at fiscal consolidation should be directed at increasing the effectiveness of the existing taxes and, even more, at reducing public expenditure, […]

Croatia will introduce from April a 1.5 percent property tax as the government adjusts its policies to attract investment ahead of European Union entry

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